White house chief of staff. He is a grate american. I would like to thank Reince Priebus for his service and dedication to his country. We accomplished a lot together, and i am proud of him. When asked about the move, the president praised both men. General kelly has been a star, done an incredible job thus far, and respending by everybody. A great american. Reince priebus a good man. Thank you very much. Reporter priebus issuing this statement, saying it its beene of the greatest honors of my life to serve the president and this country. I will continue to serve as a strong supporter of the president s agenda and policies. I cant think of a better person than general john kelly to succeed me. I wish him gods blessings and great success. Ed rollins who served in three president ial administrations. Called the dean. Ed, you were just telling me outside the studio, given the week the white house happened, this is a hail mary pass. Ed i feel for priebus. He was a great party chairman. He did the best he could in less than 6 months, its probably bent longest term anybody has served. I think kelly coming in here settles it down somewhat. Its all about the president. The president respects generals. Reporter why is that . Ed remember he wasnt in the service himself, but he was in military school. Its definitely respect. I grew up in a navy town full of marines. I wanted to be a marine. I have back injuries. When you get to be a fourstar marine. There has been 51 of them in the history of the marine corps. You walk on water. You are an Extraordinary School tar fan extraordinary intellect. Kelly has take and difficult department in Homeland Security has been chaotic since it was first formed an has done an extraordinary job in a short period of time. He may not be able to get everything he wants out of the president , but he will get everything he wants out of the staff. Reporter the events of the week with Anthony Scaramucci followed by the healthcare failing again. Overall leaks concerns. Ed it hasnt run well. I was down there visiting priebus and bannon. As i was sitting in the reception area, it seemed like a chaotic place. A lot of people Walking Around and talk. It didnt seem to be orderly. I spoke to john bolton who had a similar experience. My sense is it will get back to where its very structured. Up have an extraordinary leader in the chief of staff. And i think they have got to come back in september, labor day and start rolling. With all of your experience in these administrations, how does this Current White House compare to your experience in the white house . I only compared it could days in my own personal experience. One was when Richard Nixon got thrown out of office. And the other was the day reagan got shot. This has been a chaotic administration with lots of fights and lots of battles. The president is very unique. But my sense is this is a general as chief of staff who will give him order and structure. He knows how to work the hill. Leon panetta was his aid. Reporter well continue our conversation with you throughout the hour. The white house condemning north koreas launch of an Intercontinental Ballistic Missile. President trump vowing to take tall necessary step toins sure the security of the American Homeland and protect our allies in the region. Richedson has our report. They have done it again. North korea launches another Intercontinental Ballistic Missile. Traveling 600 miles before falling into the sea of japan. We absolutely must through various means deny north korea the capability of having a deliverable nuclear weapon. They do not have it now but they will have sit if we continue to be patient. Reporter north koreas missile and weapons capability. Secretary of state Rex Tillerson spoke with the Top National Security officials in the government to coordinate a response. Each north korean launch prompts the u. S. And its allies to further isolate the regime. South koreas president wants to deploy antiballistic missile programs with the United States. Reporter the latest icbm launch follows irans satellite being launched into space. The u. S. Says the launch violates a United NationsSecurity Council resolution. We are concerned about irans support for terrorism. We consider those to be provocative actions. A provocative action undermines the security of the region and around the world as well. Reporter the Treasury Department says state launched vehicles use technologies closely related to those of an Intercontinental Ballistic Missile and this launch is a threatening step by iran. Part of the u. S. Strategy to alter their behavior is to convince other country to the isolate them. China is key to that strategy. When asked to review chinas performance, a former state Department Official says the list of things china could be doing far outweighs the list of things they have done. Reporter the other story we are following tonight, the stunning defeat of income the senate. Lawmakers are calling for a change in direction. But there hasnt been a Major Overhaul of the tax coat in 31 years and that was done with bipartisan support. Mike emanuel has this report. I think we have an opportunity to go forward and do this the trite way. Reporter foxconn firmed senator Lindsey Graham met with trump to discuss this proposal that would take the obamacare money and send it back to the states to figure out how to best use their healthcare dollars. Im optimistic we can still get it done. I can tell you who is staying in. The president is staying in on this fight. Hes going to deliver. The disappointment of the skinny repeal coming up short. But they, too, are talking about next steps. We can break it up in pieces and see what we can do with these parts. The Senate Democratic leader called for bipartisan cooperation. We should sit down and trade ideas. Nobody said obamacare is perfect and our Healthcare System doesnt need fixing. Reporter debt ceiling increase, National Defense authorization act, Trump Administration nominations and tax reform via 2018 budget reconciliation. On tax reform gop leaders say they are going to make it simpler and fairer for american families. Getting consensus between the senate and the house on tax reform makes it more of a viable enterprise. I feel much more confident well have the landing on tax reform. We have consensus. Here is the framework, lets get it done. A reminder as we proceed to tax reform. We need to employ a different model. This cant be done with one party. Reporter the house has left the d. C. Swamp and gone to their home districts for a fiveweek recess. We are coming right back with much more on the breaking news out of the white house. General john kelly the new white house chief of staff. Keep it right here. President trump is not giving up after Senate Leadership fails to deliver on healthcare. The president is daying in on this fight. Hes going to deliver. He made it clear this morning. Reporter we take up the healthcare fight with fred barnes and the dean, ed rollins. And the president declaring war on the vile, ms13 gang. Well have a full report on the president s effort to make america safe again. Well be right back. It was always a dream of mine to become a professional soccer player, but i never imagined that id be playing in kansas city. When i was first elected mayor, they would talk about kansas city, kansas like. I cant wait to get out of here. Through the years we lost over 30,000 people. We turned that obstacle into an opportunity. The speedway was the catalyst. And because of the speedway we now have a shopping area and a wonderful soccer stadium. And now were starting to grow in population. 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Lori President Trump talking about his administrations efforts to crack down on ms13 gang. Hours before naming him white house chief of staff, the president in a speech to Law Enforcement officers on long island in new york vowing to destroy the violent ms13 gang. They dont like shooting people because its too quick. They like to knife them and cut them and let them die slowly. Reporter President Trump describing the notoriously violent gang ms13. Its the policy of this administration to disman, decimate, eradicate ms13. Reporter it started in the 1980s in los angeles. There is an estimated 10,000 gang members from l. A. To houston to long island. They are primarily from el salvador. They force to you go through some often brutal initiation ceremonies may involve killing somebody to join. Reporter the brutality of ms13 is on the rise, largely from recruiting from a flood of unaccompanied minors who crossed the bored into the u. S. Since january 2016, 17 people have been murdered at the hands of this gang. In april four young men were butchered with a machete and left in a park. Last year two girls were slaughters while walking home. Since then the police have been on the offensive making 230 ms13 arrests. The president is promising more resources to speed up deportations and more customs and Immigration Enforcement officers. The president said he will stop sanctuary cities. Authorities indicted ms13 members for her murder in march. They are grateful for his support. They are attack our children with a no mercy outlook. Reporter the president thanks Law Enforcement for their efforts. I. C. E. Has deported already 1,000 more gang members than last year. Lori joining us to discuss the shakeup at the white house. Fred barnes and back with us, the dean, ed rollins. Fred, first to you. Let me out up by asking you your thoughts on john kelly the new chief of staff. If you were surprised by the late friday news. Fred i was surprised. But this is the best thing to happen at the white house in across long time. Its like hiring bill belichik to be your football coach. I like him. Kelly is exactly what he needs. He has a huge job there. He was such an impressive cabinet member, the most of impressive one, and he diffused the whole immigration issue. The problem at the white house is the way donald trump conducts the presidency. Its not the policies. John kelly is going to have to advise the president to change them. I actually think the president is a little afraid of john kelly. He talks about his generals. And hes a little scared by them. I think kelly will be a tremendous force for good. Lori you think the president will be intimidated by general kelly and it will result in further organization at the white house and getting back on track with the agenda. As you know, healthcare, spectacularly failed this week. Ed im not sure it totally failed. The key thing here is hes its a question of whether the president will treat him as a peer. There are certain people the president treats as peers. He has proven himself to be an effective cabinet member with an extraordinary career in military. E walks in day one with a different environment. You have capable people in the white house but they havent been able to function because of infighting. There will be no more infighting. It will stop. Lori some are concerned the gop establishment has been moved out with sean spicers resignation a week ago. Fred Reince Priebus did a job as good as he could. But the republican establishment is what it is. Its who the white house is dealing with on tax reform. And they have to. They are dealing with the Committee Chairman and paul ryan and mitch mcconnell. Lori they failed on healthcare in this latest round. A lot of people are concerned with the lack of legislative support the president has, it will put tax reform in jeopardy. Fred there are a lot of people looking for reasons to say that republicans cant do anything because they have did fail so spectacularly at least for now on healthcare. But one thing that has been organized for months has been the gang of six that has come together to run the effort for tax reform. The Statement Released last night showed that, they agree on what to do. Its a completely different proposition than healthcare and i think it will be successful. Lori ed, all sorts of geopolitical threats out there. Now that there is a general running things in the west wing, do you think that will get a better handle on curb these efforts . Ed they see chaos and when they see chaos, after we failed on the healthcare and the white house is in disarray, he fires off a rocket today. I think well deal with this problem as effectively as we can and it will and high priority. The key thing on the tax is tax is something we desperately need to get this economy moving again. Healthcare was put together by obama and his team its a political document. Cutting taxes, getting business moving forward, creating capital. Its a positive thing. Lori it hasnt happened in 31 years. Ed the reality is it can happen now and i think it will be a high priority. Lori thank you so much ed and fred. Do you believe the white house shakeup will stop the leaks . A remind tore follow louen twitter loudobbs. Like the show on twitter and instagram loudobbs tonight. Vie read on the show will receive an autographed copy of putins gambit. The s p off 3, the nasdaq down. The week now. The dow up 1 not too shabby. S p and nasdaq posting fractional losses on the week. Starbucks posting its worst decline in two years. Economic growth accelerating in the second quarter. The economy expanding 26 . A reminds tore listen to lous report coast to coast on the sail fell radio network. North korea launching its second longrange Intercontinental Ballistic Missile. John bolton will join us next. Stay with us. Your brain changes as you get older. But prevagen helps your brain with an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Tap one little bumper and up go your rates. What good is having insurance if you get punished for using it . For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Liberty mutual insurance. Reporter russia is retoolating for the sanctions. It comes a day after the Senate Overwhelmingly approved another round of sanctions. For more on the back and forth with russia as well as new provocations from iran. We are joined by the former ambassador to the u. N. Ambassador bolton, great to see you. Your comments, your opinion on the chief of staff. Will general john kelly help the president better deal with our frenemies, if you will, north korea today launching missiles. John he brings a distinguished career in the military with him. And having served as secretary of Homeland Security for six months. The president picked him for that job. I think bringing him in as white house chief of staff is based if not just on the president s impression of him on the transition, but six months of dealing with him. Having that kind of relationship between the president and his chief of staff is critical to the running of the white house. I think secretarygeneral kelly starts off with that as an advantage. If you want the administration to succeed you can only wish him the best of luck in getting things under control. Lori will kelly do a better job than priebus . John that remains to be mean. My ideal for chief of staff was jim baker for ronald reagan. He knew how to make things run and time and achieve the president s agenda. He said the president never loses. Thats an important point to keep in mind. And number two the piece of advice he used to give me was keep our eyes on the prize. Focus and discipline. And im sure he said it base thought i needed to hear it. But thats the kinds of attitude. If jim barrack would have been chief of staff, that would have been my ideal. Lori lept unpack some of the hotpots. The u. S. Is running out of time to diffuse the situation before north korea has the it in capability to strike u. S. Soil which could be within a year. What more needs to be done . John we are close to an unacceptable point where north korea has the ability to reach the United States with nuclear weapons. The day they get that capability they will have it 24 hours later by iran writing a check to them. We ought to realize there are regimes like to north korea and iran where that doesnt work. Diplomatic options remaining are very limited and i believe that means convincing china its in their interests to allow the reunification of the korean peninsula. Its a hard argument to make.